BankIslami Pakistan Limited (BIPL) reported earnings per share of PKR 10.67 for CY24, compared to PKR 9.96 in CY23. Furthermore, in 2QCY25, the company reported EPS of PKR 1.62, compared to PKR 3.47 in the same period last year (SPLY). The bank’s management is scaling back its ambitious expansion plans for the current year. Initially, the goal was to open 60 new branches, but a recent decline in policy rates has prompted a revision.
The new target is to open a more modest 20 to 30 branches. This strategic shift comes as the bank grapples with lower than industry average deposits per branch, and it is now prioritizing the enhancement of its digital footprint, particularly through the “AIK” app.
The bank’s total deposits stand at a substantial PKR 630 billion. The current accounts make up a significant 47% of this total, while savings deposits account for 24%. Management anticipates that the proportion of current accounts will remain stable. The bank’s investment portfolio totals PKR 391 billion. A dominant 90% of these investments are held in federal government securities, while 8% are allocated to Pakistan Energy Sukuk.
The total financing portfolio amounts to PKR 243 billion. This is primarily concentrated in the corporate sector, which accounts for 71% of the loans. The housing and SME sectors each represent 8% of the portfolio. The bank has experienced robust growth in its fee and commission income, which reached PKR 1,783 million, marking a remarkable 64% YoY increase. The number of debit cards issued grew by 23%, and mobile banking users surged by 67% during the first half of the fiscal year 2025. Regarding the “aik” digital app, management noted a positive reception following its soft launch in March. The bank is now focused on further product enhancements and service additions to capture a larger market share.
Important Disclosures
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